Total production slowed slightly

Production of goods and services slowed down slightly in Q1 2017 (+0.5% after +0.7%).
It fell back in goods (−0.2% after +1.0%) while it increased almost at the same pace
as in the previous quarter in services (+0.7% after +0.6%).

Manufacturing output fell back (−0.2% after +0.7%), mainly due to a sharp decline
in the coke and refined petroleum branch and a slowdown in transport equipment. Electricity
and gas production also shrank. In the construction branch, production slowed slightly
(+0.3% after +0.6%). Conversely, it accelerated in market services (+0.9% after +0.6%).

Household consumption weakened

In particular, expenditure on energy fell back strongly (−3.3% after +3.4%): temperatures
in winter 2017 were rather mild for the season, after a cool autumn 2016. Consumption
of engineered goods decelerated (+0.1% after +1.1%), mainly due to a decline in vehicle
purchases. By contrast, consumption of food products recovered (+0.4% after −0.2%).

In Q1 2017, total GFCF accelerated sharply (+1.2% after +0.5%), especially that of
enterprises (+1.9% after +0.9%). Investment of households kept on increasing vigorously
(+1.0% after +0.9%). Investment in manufactured goods was more dynamic (+1.6% after
+0.4%), notably in equipment goods. Similarly, GFCF in market services accelerated
sharply (+1.9% after +0.7%), notably in information-communication and business services.
Investment in construction decelerated slightly (+0.3% after +0.5%).

Foreign trade balance weighed down on GDP growth

Exports fell back in Q1 2017 (−0.8% after +1.0%), especially in transport equipment
and “other manufactured goods”. Imports accelerated (+1.4% after +0.6%): in particular,
purchases of refined petroleum products bounced back and those in “other industrial
goods” increased more vigorously. All in all, foreign trade balance weighed down on
GDP growth by −0.7 points, after a contribution of +0.1 points in the previous quarter.

Changes in inventories increased significantly

In Q1 2017, the contribution of changes in inventories to GDP growth amounted to +0.7 points
(after −0.2 points at the end of 2016). They increased especially in transport equipment
and “other industrial goods” (pharmaceuticals, metallurgy and chemicals).

The GDP profile has been revised over the past

The extent of the revisions compared to the previous estimate is typical at this time
of year: it results from the benchmarking on the annual accounts revised on years
2016 (GDP growth unchanged, at +1.1% WDA), 2015 (−0.2 points at +1.0%) and 2014 (+0.3 points
at +1.0%) and from updates of seasonal and working day adjustments as well as revision
of indicators. The GDP growth for Q1 2017 is raised from +0.3% to +0.4%.